HOME PURCHASE LOAN

Home loans are long term borrowing instruments with a minimum tenure of 5 years and a maximum tenure of 30 years. The tenure offered to you for your personal loan depends on the loan amount that is sanctioned to you by the lender along with other factors.

Anyone — whether self-employed or salaried individuals/professionals — with a regular source of income can apply for home loans. One must be at least 21 years old when the loan period begins and should not exceed an age of 65 years when the loan ends or at the time of superannuation. This is the generic home loan eligibility criteria and specifics such as the minimum and maximum age limits, minimum income level, etc. may differ from one lender to another.

When you log on to the home loan section of KSG Home Loans, you can apply for a home loan in minutes by following a few key steps:

• Find out the various lenders who would be interested in providing you with a home loan based on the loan amount, income level, and related criteria provided by you.
• Compare the home loan offers based on factors such as interest rates, processing fees, and other relevant factors.
• Just choose and click to apply for the home loan with the specific provider with the click of a button.
• Subsequently, your prospective lender will get in touch with you to get supporting documents and complete other formalities.

In short by applying through KSG Home Loans, the process of comparing and choosing home loans is simplified by saving you a lot of time and effort.

Once repayment capacity determines your eligibility to apply for a home loan, lenders consider the following factors:

• Income level of the applicant
• Age  of the applicant
• Qualification (stability and occupation continuity)
• Resident status (maximum limit for an Indian resident differs from that of a non-resident)
• Spouse’s income (household income is taken into account when there is a co-applicant)
• No. of dependants (it is a measure of repayment capacity)
• Credit history and score (past repayment track record)
• Status of existing loans

No. A lender would only allow you to apply for a joint home loan if the application is co-signed by one or more members of your immediate family. Thus, your friend does not qualify.

Immediate family members such as your parents, spouse and children are allowed to be joint borrowers in case of a home loan.

The maximum number of joint borrowers in case of a home loan is fixed at 6. However, only family members such as parents, siblings, and spouses can be co-borrowers for a home loan in India. Additionally, having a co-borrower who has a robust credit history and good credit score is preferable as compared to one with a low credit score.

If the interest rate on the loan varies periodically over the loan tenure, then it is called a floating rate home loan. Lenders have their own base rate which determines the rate of interest charged on a home loan. The base rates of banks are revised from time to time based on RBI directives as well as other factors, which leads to an increase or decrease in the EMI amount payable.

Fixed rate home loans are offered at a predetermined interest rate during the loan period and these remain unchanged during the loan period irrespective of market conditions. This can be a huge benefit when market volatility starts affecting interest rates. For instance, if the RBI increases interest rates on loans, then people with fixed rate home loan will not be affected by any increase or decrease in the market interest rates and the EMI amount will remain unchanged. This type of home loan is less popular these days.